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Making crappy USB Bluetooth dongles work with the native Windows XP stack

Insert crappy dongle.
Skip the drivers.
Open the device in device manager.
In the Details tab, select "Hardware ids", and select the entry that has the Vid and Pid only – the one that looks most like "USB\Vid_1131&Pid_1004". Press Ctrl-C to copy this entry to clipboard. Save it for later.
Copy the file "%windir%\inf\bth.inf" to another directory.
Open the copy in an editor (e.g. notepad), and find the "[Cambridge.NT.5.1]" section.
Add the line "My wacky dongle=BthUsb, USB\Vid_1131&Pid_1004", except replace the bolded part with the string you copied earlier. You can change the name to whatever you like. Save the file.
In the device properties, click "Update driver" or "Install driver".
Choose advanced, and specify the path to the "bth.inf" file we just edited.
Your dongle should be recognized as "My wacky dongle" or whatever you named it, and work with the standard XP bluetooth stack.